Can Kenya default on its debt obligations? Time will tell

Kenya's public debt is sustainable but remains at a high risk of debt distress (DSA). [iStockphoto]

There have been recent articles comparing Kenya's economy to that of Ghana which was placed in default in December 2022.

What is a default for a country? A sovereign default occurs when a country fails to pay back its loan. The International Monetary Fund (IMF) defines default as a breach of contract or broken promise. Sri Lanka is the latest addition to the list of defaulters.